Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our careers looking for businesses where the customer, once acquired, is nearly impossible to lose — where the product burrows so deeply into the customer's operations that removing it would be like performing surgery on yourself. PTC is such a business. Its computer-aided design (Creo) and product lifecycle management (Windchill) software hold the engineering crown jewels — the actual design data — of some 30,000 industrial companies, many of which have run this software for two or three decades. Roughly 96% of software revenue is recurring, and annual recurring revenue is compounding at 9% with churn so low it barely registers. A year ago the stock traded at $219 on rumors Autodesk would pay more than $20 billion for the company.
Recent filings analysed: 10-Q (2026-07-31), 8-K (2026-07-29), 10-Q (2026-05-07), 8-K (2026-05-06).
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